Widespread tech sell-off drags Wall St. down

(Reuters) - A broad sell-off of technology stocks pushed the three major U.S. stock indexes lower on Monday, with the Nasdaq Composite posting its third consecutive loss of more than 1 percent for the first time in three years just days after hitting a record high.

The technology index .SPLRCT tumbled 1.8 percent as investors looked to other sectors or took profits ahead of the volatile midterm election season.

But technology fell across the board, pushing all three major U.S. stock indexes into negative territory.

The tech-heavy Nasdaq has also seen a sharp uptick in the number of stocks striking 52-week lows. On Monday, 102 Nasdaq-listed stocks fell to their lowest price in a year or more, 65 more than those hitting new highs.

“There’s an enormous amount of money (in tech stocks) and some of that money is rotating out or moving to the sidelines,” said Wayne Kaufman, chief market analyst at Phoenix Financial Services in New York. “People are concerned about the typical midterm election year cycle.”

“And tariff jitters are front and center,” Kaufman added.

Control of both the U.S. House of Representatives and Senate are at stake in the November midterm elections.

With second-quarter reporting season now well past its mid-point, analysts now expect S&P earnings to have increased by 22.6 percent, up from the 20.7 percent seen on July 1. Of the 270 companies that have posted results, 82.6 percent have beat consensus estimates.

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., July 27, 2018. REUTERS/Lucas Jackson

The Dow Jones Industrial Average .DJI fell 144.23 points, or 0.57 percent, to 25,306.83, the S&P 500 .SPX lost 16.22 points, or 0.58 percent, to 2,802.6, and the Nasdaq Composite .IXIC dropped 107.42 points, or 1.39 percent, to 7,630.00.

Of the 11 major sectors of the S&P 500, seven closed in negative territory.

Shares of CBS Corp (CBS.N) extended their fall, dropping 5.1 percent. The media company’s board met on Monday to discuss personal misconduct allegations against Chief Executive Leslie Moonves and said it was selecting outside counsel to conduct an investigation.